Amid an era of volatility “The Resilient Consumer” is adapting to change, Accenture Survey finds. The majority (85%) of consumers believe they are currently living with uncertainty, with more than half (52%) expecting this to last for more than 12 months, according to new research from Accenture, the latest in a series of consumer surveys that Accenture has been conducting to test the pulse of consumer outlook and sentiment since the start of the pandemic. This is bringing about an “Era of Volatility”, where an ongoing state of uncertainty is spurring people to change behaviors suddenly, and, often in, unexpected or contradictory ways.
“The Resilient Consumer”
The survey — of more than 10,000 consumers in 16 countries — found that despite lasting uncertainty, the “resilient consumer” emerging and adjusting to continued disruption by seeking out ways to protect and control what’s important to them. In addition, many appear bullish about their financial situation, with almost three-quarters (73%) of consumers expecting their disposable income will stay the same or improve in the next 12 months.
Jill Standish, senior managing director and global lead for Accenture’s Retail industry practice, said, “To succeed in this market, retailers and brands should not overgeneralize when it comes to examining the drivers of consumer behavior. Instead, they need to understand the nuances of the consumer as an individual — pay close attention to data and analytics — and use that insight to offer the right product and the right experience at the right price in the right places on the right channels.”
Resilient spend categories
A strong indication of consumer resilience is their intention to spend more. When asked how their expected spend will change over the next six to 12 months, respondents said they plan to spend more across eight out of 15 categories – in areas such as leisure travel and wellness (e.g., Self-care) – compared to six categories in 2022.
And, after several years of enforced pandemic-related travel restrictions, consumers were reminded that travel is more than a trip away. It’s about human connection. After a year of strong growth for the travel industry, 71% of consumers plan to sustain or increase their current spending on leisure travel in the next year, even while limiting spending across most discretionary categories. In the next year, eight in 10 (78%) of consumers are planning leisure travel – and half (50%) are planning two or more leisure trips. This signals that consumers still see travel as an essential part of their lives.
Emily Weiss, senior managing director and global lead for Accenture’s Travel industry practice, said, “As they focus on capturing this buoyant desire to travel and driving growth through customer acquisition, travel companies know they need to put the traveler front and center and tailor offerings for distinct types of consumers. This means working beyond traditional silos and considering their entire journey by using technology to better connect all customer touchpoints. It is about personalization at scale, maximizing the value of micro-moments, meeting guests where they are instead of trying to dictate their path – for example, having the insight to know whether they are looking for self-service or direct contact and then meeting those needs.”
Companies must anticipate and proactively prepare for sharp and sudden shifts
A separate Accenture macroeconomic analysis warns that the persistence of inflation, high interest rates, and growing income and employment uncertainty, could further test the resilience of consumer spending in the coming months.
The consumer pulse survey highlights that consumers with resilience are not naïve about the state of the world. More than half (56%) expect the coming years to be a struggle, and 68% are more cautious about the decisions they make these days. Even so, 44% say that challenges in recent years have created opportunities for them, and 61% are trying new experiences or adopting new habits to improve their lives.
“People are demonstrating a resilient mindset and ability to deal with adversity, withstand shocks, and adapt to continued uncertainty. Now, retailers and brands must do the same,” Standish said. “It means taking a holistic view of the consumer and committing to a continuous strategy of reinvention that allows them to quickly adapt and accelerate as disruptions and crises arise over time. Creating dynamic data-driven pricing strategies, targeted marketing, and loyalty programs, and stress-testing the P&L against different spending slowdown scenarios, are just some of the ways companies can get ahead of the market.”
Resilient consumers, resilient values
The latest survey supports Accenture’s previous findings that even during times of economic and financial uncertainty, the environment still matters to consumers. Following concern for the national economy, which is top of the list for consumers (66%), the environment comes in second (63%), ahead of concern for personal finances (56%). The survey also shows a large proportion of consumers (83%) have increased sustainable shopping behaviors in the last 12 months, such as only buying what they need, taking their own bags to the store, buying better quality goods that will last longer, repairing or upcycling what they have, and buying reusable or refillable products.
Oliver Wright, senior managing director and global lead for Accenture’s Consumer Goods & Services industry practice, said, “There’s no greater challenge facing the consumer industries, than how to manage the transition to future consumption. While permanently moving the needle on sustainability remains a complex challenge, the opportunity is there. The focus needs to be on reinvention with tangible action to advance the sustainability agenda. It means paying close attention to evolving and multifaceted consumption habits to help people do better by the environment regardless of their motivations for doing so. Above all, it calls for extraordinary levels of collaboration, commitment, and consumer engagement — not to mention technology and business innovation — to drive growth that is better for brands and crucially, better for the planet.”
While the survey identified continued consumer concern for the environment and increased sustainable shopping habits, it also found that the majority (81%) of consumers feel they have less control over their environmental footprint compared to pre-pandemic. In response, consumer-facing companies must develop offerings that address a combination of buyer values — economic, personal, sustainability – not a trade-off of one over the other.
A separate Accenture study, “Our Human Moment” cautions a relevancy gap is emerging between the way organizations think they should encourage people to be sustainable and the way people themselves define, connect and act sustainability. The gap is so wide, that three in five people don’t strongly relate to the idea of living sustainably. Only by taking a broader view to sustainability – as part of continuous reinvention of the business – can companies adapt to consumers’ evolving needs and priorities through offering the most relevant brands, products, or services.
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